Economic warfare: Bankrupting Iran will be more effective than bombing - opinion
Summarized and contextualized by DistantNews.
At a glance
- The article argues that economic warfare, rather than further bombing, could be a more decisive strategy against Iran.
- Iran's economy has suffered approximately $270 billion in damages, equivalent to 57% of its GDP, due to the ongoing war.
- The author advocates for cutting off Iran's access to money to hinder its military rebuilding, support for terrorism, and regime's grip on power, distinguishing between the Iranian people and the current leadership.
Beyond military strikes, economic warfare presents a potentially more decisive strategy against Iran, the author argues. While bombs can destroy military infrastructure, the ability to rebuild depends on financial resources. The article posits that effectively cutting off Iran's access to money is crucial for preventing the rebuilding of its military, funding terrorism, and maintaining the regime's hold on power.
Economic warfare.
The economic toll on Iran has been staggering, with the war causing an estimated $270 billion in damage, representing roughly 57% of the nation's GDP. This extensive destruction suggests that Iran's economic recovery could take years, if not decades. The compounding effect of the conflict means each additional month of war could set the economy back by over five years due to the loss of capital stock, infrastructure, and productivity.
History demonstrates how rapidly economic damage can escalate once an economy's foundations weaken. Declining business capital, reduced productivity, vanished investment, and collapsed confidence can create a crisis that becomes increasingly difficult to reverse. Iran entered the current conflict already weakened by decades of sanctions, corruption, mismanagement, inflation, currency devaluation, and international isolation. Now, it faces immense rebuilding costs while its economy continues to deteriorate.
The Iranian regime can rebuild a destroyed factory if it has the money to do so.
Ordinary Iranians are already enduring the harsh realities of rising prices, diminished purchasing power, and a weakening currency. The author emphasizes a critical distinction: the Iranian people are not the enemy, but the current leadership is. Iran possesses abundant natural resources, an educated populace, and a rich civilization, yet its wealth has been squandered on military pursuits and foreign conflicts while millions of its citizens struggle domestically.
That is why the next phase of this war should not be measured only by how many bombs America drops on Iran. It should also be measured by how effectively the United States can cut Tehran off from the money it needs to rebuild its military, fund terrorism, and maintain its grip on power.
With peace negotiations stalled and the war ongoing, President Trump has intensified economic pressure through "Operation Economic Fury," termed an "Economic D-Day." This initiative warns of severe secondary sanctions against any nation's financial institutions that engage with Iran, aiming to isolate Tehran financially.
The war has caused approximately $270 billion in damage, equivalent to roughly 57% of Iran's GDP.
Originally published by Jerusalem Post. Summarized and contextualized by our editorial team with added local perspective. Read our editorial standards.